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FIGURE 8-3 -Refer to Figure 8-3. When the Market Price Equals $105

Question 47

Multiple Choice

FIGURE 8-3
FIGURE 8-3 -Refer to Figure 8-3. When the market price equals $105 and the firm sells 675 units of output, what can we conclude about the firm? A) It is experiencing a loss, but should continue operating temporarily because business conditions may improve. B) It is earning positive economic profits. C) It is earning a normal profit. D) It is experiencing a loss and should shut down.
-Refer to Figure 8-3. When the market price equals $105 and the firm sells 675 units of output, what can we conclude about the firm?


A) It is experiencing a loss, but should continue operating temporarily because business conditions may improve.
B) It is earning positive economic profits.
C) It is earning a normal profit.
D) It is experiencing a loss and should shut down.

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